Transnational networking and business performance: Ethnic entrepreneurs in Canada

Abstract

It is generally acknowledged that transnational networking plays an important role in promoting the performance of ethnic entrepreneurial firms. Yet distinctions between the different types of transnational networking and their effects on business performance have received scant attention in the literature, probably because ethnicity has been considered to be the main actor in the networking-performance relationship. This paper argues that one of the reasons why business performance differs across ethnic entrepreneurial firms is that ethnic entrepreneurs engage in dissimilar types of transnational networking. Analyses of the data generated by 720 ethnic entrepreneurs in Canada revealed that ethnicity, along with human capital and push/pull factors, both of which are part of our conceptual framework, plays a central role in the engagement of different types of transnational networking and that the different types of transnational networking affect business turnover (sales) and business survival (age). Push/pull factors were found to play a marginal role in business performance. These results highlight the competitive market that immigrants and members of ethnic minority groups encounter in the hosting economy and stress the value of transnational networking.

Transnational Entrepreneurship amongst Vietnamese Businesses in London

“…Whilst in the UK Jones et al (2010) note that UK Somali entrepreneurs routinely draw upon transnational links to access finance, labour and commercially useful information. Transnational networks have also been shown to provide access to new markets and increased sales (Kariv et al 2009), and by facilitating the international movement of people, money and ideas between firms and across geographies, they encourage 'knowledge transfer' and contribute to business innovation (Coe and Bunnell 2001).…”

“…This 'diversity dividend', it is argued, can be used by otherwise disadvantaged ethnic minority entrepreneurs to gain a competitive advantage. Whereas previously economic success was seen to be dependent on the development of links with the mainstream, for these transnationally connected entrepreneurs success may depend instead on cultivating strong networks across national borders (Kariv et al 2009;Portes et al 1999). It is a strategy that has clearly benefited a number of businesses.…”

Leveraging symbolic capital: the use of blat networks across transnational spaces

“…The literature on links with the home country has focused on how transnational migrant entrepreneurs take advantage of access to knowledge, capital and technology (Chen and Tan 2009;Drori et al 2009) and on how networking across transnational spaces can positively impact on firm outcomes (Kariv et al 2009). Moreover, Brzozowski et al (2014) highlight that many transnational migrant entrepreneurs maintain links with the home country, seeing it as a 'backup option' if their businesses in the new, host country fail to develop.…”

Effect of the Type of Ownership in the Financial Performance: The Case of Firms in Latin America

“…These make possible evaluate the progress of the firmś objectives. The above approach is associated with financial performance (Barnes & Hinton, 2012;Kariv, Menzies, Brenner & Fillion, 2009). It has been mentioned characteristics, advantages and limitations of performance.…”